Manufacturing Plant Zone

Overview

Targeted investment communities that have State-approved Enterprise Zones may request the DECD Commissioner for this additional zone designation.  The plant must be vacant or underused with a minimum of 500,000 square feet and be located outside the municipalities bounded Enterprise Zone.
This qualified manufacturing plant zone designation is to be applied to the census tract(s) for an abandoned plant that meets statutory requirements for economic development, and is referred to as a "manufacturing plant zone" within the DECD.

Key Benefits

For qualifying manufacturers: Companies involved in manufacturing, research associated with manufacturing and distribution warehousing (new construction/expansion only) may benefit from:
  • a five-year 80% abatement of local property taxes on qualifying real estate and personal property (machinery and equipment)—the investment must be new to the municipality’s Grand List as a direct result of a business expansion and/or renovation, and 
  • other benefits as stipulated in the Connecticut General Statutes.
    • .
For qualifying service companies: Certain service companies may also be eligible for these benefits based on several sliding scales:
  • If they invest $20-90 million: a five-year, 40% property tax abatement on real estate and/or equipment; OR
  • if they invest more than $90 million: a five-year, 80% property tax abatement on real estate and/or equipment.
  • If they create 300-599 jobs: a ten-year, 15% business tax credit; UP TO
  • if they create 2,000+ jobs: a ten-year, 50% business tax credit.

Eligibility

These programs are designed to encourage capital improvements to land and/or buildings. Businesses must be prepared to either:
renovate an existing facility by investing at least 50% of the facility’s prior assessed value in the renovation; OR construct a new facility or expand an existing facility; OR

acquire a facility that has been idle for a stated minimum timeframe (sliding scale dependent on average number of employees for previous six months):
(if 19+ employees) at least one year ,
(if 6-19 employees) at least six months ,
(if 5 or fewer employees) no idleness requirement applies. If the applicant is leasing this qualifying facility, the lease must be for at least five years with the option at that point to either renew the lease for an aggregate term of not fewer than 10 years or buy the facility. If the business averages fewer than 10 employees, those requirements may be reduced to aggregate leases of fewer than six years or the option to purchase after three years.
Some zones might specify a range of North American Industrial Classification System (NAIC) codes, priority industry clusters, and/or pre-approved non-manufacturing business operations.

Statutory Reference

CGS Sec. 32-75c subsection (a) Designation of properties as manufacturing plants. Qualified manufacturing plants. 

How to Apply


For businesses seeking tax incentives and other benefits: Across all cities and towns that are approved by the DECD to participate in the Enterprise Zone program:

Step One
  1. Before starting any project, the business must first submit a formal request through the local economic development office of the municipality in order to obtain a Preliminary Questionnaire.
  2. If pre-qualified, the business would receive from the DECD a formal application and an invitation to apply.
Step Two
  1. The business submits a complete application with required documentation to the DECD prior to October 1 of the year in which the project will be completed.
  2. If approved, DECD would issue a Certificate of Eligibility.
 Contacts

To view the designated municipal Enterprise Zone coordinator for this zone type, please refer to the Contact section.